Labour is backing greater flexibility in pension pots but warns the Government must move to tackle misselling risks in its new guidance regime.
The Budget pensions overhaul will be supported by face-to-face guidance for defined contribution pension scheme members at retirement.
Shadow Work and Pensions Secretary Rachel Reeves says: “Labour wants a better deal for savers and we support reform and greater flexibility for people in retirement.
“We believe that it is right people who save are given greater choice in using their carefully saved pension money.
“We want the Government to make sure there is independent support for people to maximise their retirement income. The Treasury must publish a fully costed implementation plan for the delivery of high quality advice, including steps to combat the risk of misselling.”
The party says reforms must benefit middle earners and warns pensions tax relief “must not help only the richest”.
Last year, shadow pensions minister Gregg McClymont told Money Marketing to “watch this space” when asked if Labour is planning to reform tax relief.
Independent financial consultant Richard Hobbs says: “It is a poor response from Labour.
“It is terrified of opposing these reforms because they would be accused of boosting the nanny state and it does not poll very well.”